What you need to know

Online video is becoming interchangeable with traditional television usage, with internet connectivity widely available on televisions, and television content widely available via laptops, tablets, and smartphones. This report explores response and engagement not only with online video ads but also standard broadcast commercials. Subjects include commercial avoidance, reach of ads, purchasing based on ad viewership, the path to purchase between seeing the ad and making a purchase, and how second-screen usage is changing the television experience.

Definition

For the purpose of this report, Mintel defines television ads as those seen via broadcast, on DVR after broadcast, and those seen while watching video on demand content from satellite, cable, and telco subscription services, even if these ads are seen on a smartphone, tablet, or computer.

Online video ads are those seen while watching programming from a website or app not affiliated with a television service subscription, and includes ads that occur before, during, or after content seen through these formats, including overlays. Sales data, however, includes only online video not seen on a phone or tablet.

Data sources

Sales data

Market Size and Forecast: Forecasts for this report are original to Mintel. Historical sales of television ads are provided by Kantar Media. Historical sales of digital video ads are provided by the IAB (Interactive Advertising Bureau).

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer attitudes and behavior to television and online video ads. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in February 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents by gender, age, household income, and region so that they are proportionally representative of the US adult population using the internet. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results and to allow for more precise parameter estimates from our reported findings. Please note that our surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Experian Marketing Services NCS (National Consumer Study) and the Experian Marketing Services NHCS (National Hispanic Consumer Study). Data for this report include the NCS/NHCS Fall 2013 six-month study, carried out during April-December 2013 with a sample of 11,620 adults aged 18+, with results weighted to represent the US adult population. Mintel trends data from the NCS/NHCS data, including the following surveys:

  • Experian Marketing Services Spring 2013, November 2012-June 2013: results based on 12,069 adults aged 18+

  • Experian Marketing Services Fall 2011, April-November 2011: results based on 11,948 adults aged 18+

  • Experian Marketing Services Fall 2009, April-November 2011: results based on 11,459 adults aged 18+

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics may be of any race.

In addition to quantitative consumer research, Mintel also conducted an online discussion group among a demographically mixed group of adults aged 18+. This discussion group was asynchronous (ie not run in real time), functioning like a blog or bulletin board, with questions remaining posted for a predetermined period of time. This method allows participants to respond reflectively, at their leisure, or to log off to think about any issues raised and return later to respond. Participants were recruited from GMI’s online consumer panel. All quotes are included verbatim, and as such, include typos and other grammatical errors as they originally appeared.

Abbreviations and terms

Abbreviations

The following is a list of abbreviations used in this report.

CAGR Compound average growth rate
CPI Consumer Price Index
cVOD Cable video on demand
IAB Interactive Advertising Bureau
iVOD Internet video on demand
NCS/NHCS National Consumer Study/National Hispanic Consumer Study (Experian Marketing Services)
OTT Over the top
RAB Radio Advertising Bureau
: :

Terms

Digital video ads Per the IAB, advertising that appears before, during, or after digital video content in a video player (ie pre-roll, mid-roll, post-roll video ads) in streaming content or in downloadable video. Ads seen on mobile phones and tablets are not included.
Online video Videos viewed online seen on any type of hardware, including phones and tablets.

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI (Consumer Price Index) to deflate current prices. The CPI is defined as follows:

CPI The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.



The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer's dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.



The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.



Based on Bureau of Labor Statistics definition.
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